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Marrakesh Agreement


Why is it in the news?

  • World Trade Organization (WTO) is celebrating 30 years of the Marrakesh Agreement.

About Marrakesh Agreement (1994)

  • Signed by 123 countries in Marrakesh, Morocco, in 1994 after the conclusion of the Uruguay Round.
  • Led to the establishment of the WTO in 1995, replacing the General Agreement on Tariffs and Trade (GATT).
  • Serves as the basic framework for trade relations among all WTO members.
  • Expanded the scope beyond trade in goods to include trade in services, intellectual property, and other topics.
  • Established a modern multilateral trading system, facilitating negotiations, dispute settlement, and economic cooperation among members.
  • Created the WTO’s governance structure, including the Ministerial Conference (highest decision-making body), General Council, and specialized councils.
World Trade Organization (WTO)

About:

路聽聽聽聽聽聽聽 Established in 1995, it is the only international organization dealing globally with the rules of trade between nations.

路聽聽聽聽聽聽聽 Its objective is to help its members use trade as a means to raise living standards, create jobs, and improve people’s lives.

路聽聽聽聽聽聽聽 Members: 166 countries, accounting for 98% of world trade, including India.

路聽聽聽聽聽聽聽 Headquarters: Geneva, Switzerland.

路聽聽聽聽聽聽聽 Decisions: Typically made by consensus.

Achievements of WTO:

路聽聽聽聽聽聽聽 Lowering trade barriers: Real volume of world trade expanded by 2.7 times since 1995, with average tariffs almost halved from 10.5% to 6.4%.

路聽聽聽聽聽聽聽 Rise of Global Value Chains (GVCs): Trade within these value chains accounts for almost 70% of total merchandise trade.

路聽聽聽聽聽聽聽 Growth in developing countries: Fastest poverty reduction since 1995 and increased purchasing power in all countries.

路聽聽聽聽聽聽聽 International Trade Agreements and Rules: Includes the TRIPS Agreement, Nairobi Package, Trade Facilitation Agreement, Doha Development Agenda, etc.

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